Cooper Company has a direct material standard of 2 gallons of input at a cost of $7.50 per gallon. During July, Cooper Company purchased and used 13,000 gallons, paying $93,200. The direct materials quantity variance was $1,500 unfavorable. How many units were produced?
A) 13,000 units
B) 6,600 units
C) 6,214 units
D) 6,400 units

Question

Quizplus · Accepted Answer

The direct materials quantity variance is calculated as (Actual Quantity - Standard Quantity) x Standard Price. Given the variance is $1,500 unfavorable, we can set up the equation: (13,000 - 2x) x $7.50 = $1,500, where x is the number of units produced. Solving for x gives 6,400 units.

Cooper Company Has a Direct Material Standard of 2 Gallons